Using Allocations for Standard Costing (Oracle General Ledger Users' Guide)


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Using Allocations for Standard Costing

You can use statistics such as sales units, production units, number of deliveries or customers served to perform standard costing. For example, you might want to calculate cost of sales based on sales units and a standard cost per unit.

To perform this type of standard costing, define a recurring journal entry formula using the appropriate statistical account and a fixed amount for standard cost. Or, you can maintain the standard cost as a statistic in a different account. Each accounting period, adjust the statistical account balances before generating the recurring journal formula.

Using Allocations for Standard Costing

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